I just have a LG CED-8020B as a primary cd/cdr/cdrw. Is it really necessary to have a dedicated cd-rom to read off of? I guess it would be faster for backing up stuff? I don't do that much burning, so i'm just wondering if I really need it or not.

Not absolutely essential. In general it is preferable to image any cd copy to hard drive first and this can be done from the LG - you will only need to swap the cd for a blank one at burn time. Providing the LG can play audio and do everthing else you want then don't bother with a separate cd.